A blockchain, originally block chain, is a growing list of records, called blocks, that are linked using cryptography. Each block contains a cryptographichash of the previous block, a timestamp, and transaction data (generally represented as a Merkle tree).
It is very common when you lose sight of all the potential weaknesses and benefits of any modern technology when there is massive hype of it. Blockchain in IOT is one of those things. The blockchain technology has achieved massive attraction over the years. Blockchain is used by countless number of industries, and hence there is no doubt that it has some important benefits for the commercial world. Blockchain has been a boon to the realm of data secured connectivity. Although, you need to be aware of its benefits before applying it to your organization.
Benefits of Blockchain
- Decentralization of Blockchain
Blockchain breaks the data into small chunks and then distributes it to the overall network or computers, other than uploading it to a cloud server or keeping it in one single location. There is no need of any middle man here, you do not need to get a third party involved for the transaction. You can completely rely on the decentralization feature of blockchain.
- Blockchain provides validation and encryption
All that happens in the blockchain are encrypted and it is possible to prove the non-alteration of data. Since it distributes data, you can keep a check on file signatures of all the ledges on the network nodes and you can check if they have not been changes. If someone changes the record, then the signature will show invalid.
- Blockchain CANNOT be hacked virtually
Because of blockchain’s distributive nature, hackers can never be able to hack it. Hackers generally break into the traditional network and hacks all the data found in one singular places. But since blockchain is decentralized, verified and encrypted by the overall network, it becomes impossible for hacker to do anything. Each legitimate transactions are confirmed by various nodes on the network.